A profit maximizing perfectly competitive firm would never operate at an output level where
a. it would not cover all of its variable costs
b. it was not earning a positive economic profit.
c. it was not earning a zero economic profit.
d. it was not earning an accounting profit.
a
You might also like to view...
Given the scenario described, if the market price of hammers decreased from $17 to $12:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. producer participation in the market would increase. B. producer participation in the market would decrease. C. producer participation in the market would not be affected. D. total producer surplus would remain unchanged.
If MUx/Px exceeds MUy/Py, then the consumer should
a. consume more of good X and less of good Y b. consume less of good X and more of good Y c. consume less of both goods X and Y d. not change the consumption levels of X and Y e. consume more of good Z
Believers in a fixed-rule approach to stabilization policy propose that
a. Congress should balance the high employment budget. b. the Fed should keep the money supply growth constant. c. the economy be stabilized by automatic mechanisms. d. All of the above are correct.
If a monopolist can price discriminate among buyers, it will charge buyers with more elastic demands a higher price.
Answer the following statement true (T) or false (F)